"What is life insurance?"

                                                                 The insured amount to be paid, by                                                                  the insurer, on death of the person                                                                  is called Insurance. Life                                                                  insurance is a protection plan                                                                  and is regarded as the main tool                                                                  of financial planning. Life is                                                                  uncertain and it is always good to                                                                  insure as it would help the other                                                                  family members or dependents.

                                                                 The life insurance company                                                                  insures the person for a specific                                                                  amount. The amount of premium                                                                  depends upon how many years                                                                  and amount to be insured                                                                  (coverage). Age also is a factor while considering a life insurance policy. The person who is insured should provide all the information correctly including his health position, as life insurance is an agreement between both the parties and is also called as a contract in good faith.

The insured should provide all the details like age, family history, health etc correctly. The amount of premium is very very low compared to the amount, which would be provided in case of death. Life is uncertain and to protect your dear and near ones it is advised to take a life insurance policy.

There are two types of insurance policies, one is term insurance and the other is permanent insurance. It is important to plan and decide which policy your family needs. You have to take into account the amount of loans, mortgage etc before you decide on a life insurance policy.

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